EUR/USD: Super Tuesday, super dollar
EUR/USD is on the back foot after Biden leads on Super Tuesday. US bond yields and the US dollar are reacting positively to the political news, pushing EUR/USD lower. The Fed's emergency rate cut, coronavirus headlines, and top-tier US figures are eyed, as FXStreet’s Yohay Elam notes.
“The dollar is feeling energetic as centrist Joe Biden is in the lead in the Democrats' ‘Super Tuesday.’ Leftist rival Bernie Sanders is trailing behind. Investors prefer a business-friendly candidate to run against President Donald Trump.”
“The greater story for financial markets is the coronavirus outbreak – and the Federal Reserve's dramatic response. The world's most powerful took the initiative and announced an emergency 50 basis-point rate cut to mitigate the economic fallout from the crisis.”
“The ADP private-sector jobs report is set to show a sub-200,000 gain – back to healthy normal levels – after a whopping increase of 291,000 in January. The report serves as a hint toward Friday's jobs report.”
“The ISM Non-Manufacturing Purchasing Managers' Index is forecast to show ongoing solid growth in the US' largest sector. with a score of around 55.”